YG Entertainment, Expected Significant Growth in Second Half... Target Price Up - Eugene Investment & Securities

[Financial News] Eugene Investment & Securities announced on the 14th that YG Entertainment is expected to show a different appearance in the second half compared to the lackluster first half. Accordingly, they maintained a 'buy' investment opinion and raised the target price from 910,000 KRW to 1,100,000 KRW.
Hyunji Lee, a researcher at Eugene Investment & Securities, stated, "YG Entertainment's sales for the second quarter are expected to be 116.4 billion KRW, and operating profit is expected to be 1.4 billion KRW, which is below market expectations," adding, "Although there was no comeback with new releases from artists, the Baby Monster and Treasure tours were reflected, showing external growth."
Eugene Investment & Securities evaluates that YG Entertainment's full-scale growth begins in the second half. The third and fourth quarters are expected to reflect Blackpink's stadium tour, and with the addition of Baby Monster's North America encore tour, MD sales are expected to grow alongside the performances.
Researcher Lee said, "Since the first quarter of this year, the diversification of MD items has rapidly expanded sales," adding, "The MD items for this Blackpink world tour are expected to exceed 40 items, and the growth trend in MD sales due to diversification is expected to continue."
Furthermore, Researcher Lee added, "The fourth quarter is expected to see the release of new works by Baby Monster and a new world tour, and as the activities of affiliated artists continue sequentially in the second half, significant performance improvement is expected."


hippo@fnnews.com Chanmi Kim, Reporter